Latest HITs: Outrigger on a role; WTTC-UNWTO deal; Hilton grows in Pakistan

Outrigger acquires on Kaua‘i. Outrigger Hotels & Resorts, Honolulu, announced it will be investing further in its home market of Hawai‘i with a planned acquisition at Kaua‘i Beach Resort & Spa. Located in the town of Līhu‘e on the ‘Garden Island’ of Kaua‘i, the resort spans 25 acres of beachfront property and features 350 guestrooms with ocean views. The transaction is expected to be completed and close on August 22, 2023. This deal will give Outrigger resorts on all four of the major Hawaiian Islands. This news comes on the heels of last month’s announcement that Outrigger acquired the Kā‘anapali Beach Hotel on Maui. It will be the seventh acquisition that the company has made in the last two years in Hawai‘i, Thailand and the Maldives.

WTTC, UNWTO to cooperate. In an historic first, the World Travel & Tourism Council (WTTC) and the World Tourism Organization of the United Nations (UNWTO) at the G20 Ministerial meeting  in Goa, India, have agreed to work together on advancing public-private sector cooperation at the global level while promoting job creation, talent development and business opportunities around the world. They will promote tourism in the global and national agendas while working to progress skills, innovation, entrepreneurship, and investment and the transition towards a more sustainable and resilient Travel & Tourism sector. The two parties will also foster community empowerment and inclusion, and collaborate around crisis preparedness, management, and recovery, building on the lessons learned from the COVID-19 pandemic.

New US performance data. U.S. hotel performance increased from the previous week, but year-over-year comparisons were mixed, according to STR data for June 11-17, 2023. Looking at the percentage change from comparable week in 2022, occupancy was 70.8% (-1.1%); ADR was US$159.82 (+2.6%); and RevPAR hit US$113.17 (+1.5%), reversing two weeks of negative comps.  Among the Top 25 Markets, Oahu Island saw the only double-digit occupancy lift over 2022 (+11% to 84.1%). Los Angeles posted the highest gain in ADR (+12.7% to US$222.47), helped by the 123rd U.S. Open. Las Vegas reported the largest year-over-year RevPAR increase (+16.8% to US$146.33).  The steepest RevPAR declines were seen in New Orleans (-24.4% to US$90.01) and San Francisco (-18.4% to US$138.95).

HGI to Islamabad. Hilton has signed its first Hilton Garden Inn in Islamabad, Pakistan. Set to open in 2027, the 115-room Hilton Garden Inn Islamabad was signed with multinational real estate development company Premier Choice and will bring the Hilton Garden Inn brand to Orchard Boulevard in Defence Housing Authority (DHA) – Phase 1, the newest commercial hub of the twin cities of Islamabad and Rawalpindi.

KSL affiliate adds two hotels. Mission Hill Hospitality, Denver, has acquired two hotel assets in a single transaction. The deal includes the 111-key Residence Inn Tuscaloosa in Alabama, and the 103-key Home2 Suites by Hilton in Blacksburg, Virginia. Terms are undisclosed. These are the 28th and 29th properties added to the Mission Hill Hospitality portfolio since the company was launched in March 2021.

Homewood in Wilmington sold. SAK Developers, a Virginia-based private investment group, has purchased the 120-room Homewood Suites by Hilton Wilmington Downtown in Delaware from The Buccini/Pollin Group for an undisclosed price. PM Hotels will retain management. Hunter Hotel Advisors facilitated the transaction on behalf of the seller. Constructed in 2019, the hotel is surrounded by numerous bars, restaurants, and tourist attractions, and is directly across the river from Riverfront East, a $2 Billion, 86-acre redevelopment now getting underway.

Peachtree grows broker-dealer team. Peachtree Group, within its broker-dealer affiliate Peachtree PC Investors (PPCI), has appointed industry veteran Brian Cho as president. In addition, Daniel Savage and Kyle Freda have joined PPCI as senior leaders. These appointments support Peachtree’s strategic objectives to scale up its capital markets, investor relations and sales efforts as well as strengthen its financial and compliance operations. Cho will be responsible for PPCI’s operations and supporting the firm’s investment objectives. Cho was previously senior vice president of operations for Overlay Capital, a vertical-focused fund manager investing in venture capital and private investment opportunities. Savage, as vice president of investments and strategy, will be responsible for capital formation strategies and investor communications and liaise with internal and external investment sales and Peachtree's investment teams. Previously, Savage served as vice president, investor relations for Cohen Investment Group, responsible for raising private equity from high-net-worth investors, institutions and family offices for their direct real estate investment offerings. As director of external wholesaling for the Southeast region, Freda will be responsible for developing relationships with financial advisors and strategic partners to raise capital.

Big May in Canada. Canadian hoteliers reported their highest performance since September 2022, according to STR’s May 2023 data. In May 2023 (year-over-year percentage change), occupancy was 69.2% (+9.3%); ADR hit C$197.10 (+15%); and RevPAR hit C$136.32 (+25.7%), Canada's room demand exceeded the pre-pandemic comparale for the seventh consecutive month. STR said to put the country's 3% demand growth from 2019 into perspective, the metric was up just 1% in the U.K. and down 2% in the U.S. With such robust demand, room rates approached nearly $200, up 18% over 2019. Among the provinces and territories, Newfoundland and Labrador recorded the highest May occupancy level (79.9%), which was up 46% year over year.  Among the major markets, Vancouver reported the highest occupancy level (83%), which was 8.5% above May 2022.

MMI grows portfolio. MMI Hotel Group, Flowood, Mississippi, has been selected to operate Fontana Village Resort & Marina in Fontana Dam, North Carolina. Nestled in the heart of the Smoky Mountains, Fontana includes a 91-room lodge and 124 cabins.